Seasonal Variations Push Höegh LNG into the Red

Norway’s Höegh LNG ended the second quarter of 2019 with in the red amid seasonal variations and dry docking costs.

The company recorded a net loss of USD 3.6 million for the quarter, down from a profit of USD 4.5 million reported in the first three months of 2019. This decrease is the result of lower EBITDA, partly offset by reduced interest expenses.

EBITDA for the period was at USD 45.7 million, compared to USD 55.9 million seen in the preceding quarter, mainly due to the lower income and higher Opex.

“Höegh LNG’s results for Q2 2019 are negatively affected by seasonal variations and dry docking costs. Adjusted for these effects our underlying numbers are in line with previous quarters,” Sveinung J.S. Støhle, President and CEO of Höegh LNG, said.

In early June, Höegh LNG signed a 12-year sale and leaseback agreement for Höegh Galleon (FSRU#10) with China Construction Bank Financial Leasing.

On the financing side, the company has achieved further diversification of funding sources by executing Höegh LNG’s first sale and leaseback agreement for the Höegh Galleon with China Construction Bank Financial Leasing (CCBL).

Through the deal, Höegh LNG is fully funded with both equity and debt for its current newbuilding programme, which will be completed with the delivery of Höegh Galleon in August 2019.

“The LNG market continues its rapid growth by increasing 16% in the first half of 2019, driven by the continued coal to gas switch and ample LNG supplies available at very competitive prices across the market.

“This is further reflected by the important progress being made on all FSRU projects where the company is already selected as the FSRU provider or has won exclusivity.

“In addition, the company is engaged in negotiations and business development activities that aims to see its complete fleet of FSRUs on long-term FSRU contracts by end of 2021.”